European and Asian stock markets mostly decreased on fears of U.S. trade policy effects on economic growth in the U.S. and China. A return to deflation in China heightened concerns. Key stock indices in London, Paris, and Frankfurt showed losses, while Tokyo recorded a modest gain. The U.S. President’s comments on possible recession added to market anxiety.
On Monday, European and Asian stock markets predominantly declined due to investor concerns regarding the repercussions of President Donald Trump’s trade policies on the economies of the United States and China, the two largest economies in the world. Additionally, a disappointing report indicating a return to deflation in China’s consumer prices heightened apprehension about economic growth.
Stock exchanges in London, Paris, and Frankfurt all experienced losses mid-way through the trading session, mirroring declines in Hong Kong and Shanghai, while Tokyo recorded a slight increase. According to Susannah Streeter, head of money and markets at Hargreaves Lansdown, “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week.”
Investors are also wary of a potential recession in the U.S., particularly as consumer confidence wanes, companies encounter growing trade complexities, and general investor sentiment becomes increasingly anxious. In an interview with Fox News, President Trump remarked about the likelihood of a downturn, stating, “I hate to predict things like that,” further adding, “There is a period of transition… we are bringing wealth back to America.”
Meanwhile, attention remains fixed on Beijing, where Chinese leaders have concluded their annual assembly. They affirmed a growth target of approximately five percent for 2025 while aiming to prioritize domestic demand as the primary economic driver and introduced an uncommon increase in fiscal funding. The weekend’s data revealing a 0.7 percent decline in consumer prices for February underscored the necessity for measures to invigorate China’s faltering economy.
According to Stephen Innes from SPI Asset Management, “The data only reinforces what’s been clear for months — deflationary pressures remain firmly entrenched in the world’s second-largest economy.” Innes elaborated that the property sector is stagnant, domestic demand remains weak, and despite a resurgence in technology stocks, broader economic recovery has yet to reach consumers.
As of approximately 1100 GMT, key stock market figures indicated: London – FTSE 100: DOWN 0.5 percent at 8,637.70 points; Paris – CAC 40: DOWN 0.5 percent at 8,084.09; Frankfurt – DAX: DOWN 0.9 percent at 22,810.93; and Tokyo – Nikkei 225: UP 0.4 percent at 37,028.27 (close), among others. Currency values reflected fluctuations, with the Euro increasing to $1.0862 and the Pound slightly declining to $1.2924.
In summary, global stock markets are experiencing downward trends primarily influenced by concerns over U.S. trade policies and China’s economic health, with notable deflationary signals emerging from the latter. Investor sentiment is increasingly cautious regarding potential recession risks in the U.S. as policymakers navigate through challenging economic conditions. Monitoring ongoing developments in these economic landscapes will be essential for stakeholders in the financial markets.
Original Source: www.kpvi.com
